Investors' Soapbox PM

Best Consumer-Stock Picks as Belts Tighten

Janney Capital sees a shift to consumer staples from cyclicals.

March 4, 2013

Janney Capital Markets

Recent earnings, weak government data and optimistic valuations have reinforced the view of our earlier call for a shift to Consumer Staples from Consumer Cyclicals, as we anticipate the multiyear outperformance within cyclical/discretionary/retail to come to an end.

Our concern, particularly on the retail sector, was that the majority of 2012 outperformance was driven by multiple-expansion predicated on...